Reuters said the above-mentioned 55 billion euros valuation reflects a total ban on Chinese communications equipment suppliersHuaweiAnd ZTE's (ZTE) additional cost to Europe's launch of 5G networks, and the two Chinese companies have a market share of more than 40% in the EU. Reuters mentioned that Huawei's products, a Chinese communications equipment supplier, were widely purchased and used by European operators. The GSMA expressed concern about the consequences of a total ban on Huawei.
“Half of them (additional cost) will be attributed to the higher cost to European operators after the competitiveness of the communications equipment market has significantly weakened,” the industry report said. “Before upgrading to a 5G network, operators need to Replace the existing infrastructure."
The report also said that the ban on the purchase of communications equipment from Chinese companies will also delay the deployment of 5G technology for 18 months, and the technology will be used in a variety of areas, from autonomous vehicles to medical and logistics. The report said, "This delay will widen the 5G penetration gap between the EU and the US by 15 percentage points by 2025."
In May of this year, the US Department of Commerce announced that Huawei was included in the “physical list”, prompting global technology giants to cut off contact with the Chinese company. The United States repeatedly pressured European countries on the grounds of “security issues” and asked them to follow suit. In this regard, Huawei repeatedly denied that its equipment has security risks. Huawei said on June 6 that it has obtained 46 5G commercial contracts in 30 countries around the world. The shipment of 5G base stations exceeds 100,000, ranking first in the world.
Despite this, Huawei is still welcomed by many countries. Earlier this month, Huawei signed an agreement with MTS, Russia's largest mobile operator, which plans to "develop 5G technology in 2019 and 2020 and pilot the fifth-generation network." On the 7th, MTS CEO Alexei Kornia said that Huawei is "fully qualified" to provide infrastructure for Russia's next-generation wireless network. On the same day, Brazilian Vice President Hamilton Moran also publicly stated that the Brazilian government will not rule out Huawei's operation of 5G mobile communication network in the country.